New Zealand is an enticing destination for foreign investors and new business ventures. Renowned for its political stability, transparent regulatory environment, and skilled workforce, this island nation offers a secure and supportive backdrop for business owners and investors. Learn how to open a corporate bank account in New Zealand. This guide details the necessary steps and documentation required for a foreign-owned company to successfully open a bank account in New Zealand.
Key takeaways to open a corporate bank account in New Zealand
| What are the primary documents required to open a corporate bank account? | Valid proof of identity, usually a government-issued photo ID. Valid proof of address, with traditional banks often requiring a local New Zealand address. Proof of meeting any other eligibility criteria. |
| What is the Foreign Account Tax Compliance Act (FATCA)? | FATCA is the kiwin system to avoid money laundering and comply with international norms. |
| Can you open a bank account online? | Most banks allow this 100% but most major banks in New Zealand require at least one director to visit a branch in person. |
| What is the minimum initial deposit? | Depends on the bank/account type, but usually no minimum |
| Who has access to the account? | Can be designated to trusted individuals |
| Banking secrecy | Present in all accounts |
| How does AML/CFT law impact the bank account opening process? | Due diligence must be run in order to comply with AML&CFT reporting requirements. This can slow things down if you do not have things in order. |
4 Steps to Open a Corporate Bank Account in New Zealand
Once you have chosen a provider to bank with, you are ready to begin the process of opening a corporate account. To open a bank account in New Zealand you must follow these steps:
Step 1: Incorporate Your Company in New Zealand
Step 2: Obtain an IRD Number
Step 3: Gather Required Documentation
Step 4: Complete the Bank’s Application Process
Expert Tip: The In-Person Verification Requirement
From our experience, the most significant challenge for foreign directors is the in-person verification requirement. While the initial application can be done online, almost all major New Zealand banks require at least one director or account signatory to visit a branch in person to present their original identification documents. We advise clients to confirm this requirement with their chosen bank early and to plan travel accordingly. Attempting to complete the entire process remotely is often not possible and leads to significant delays.
Below is more information on each of the steps outlined above.
Step 1: Incorporate Your Company in New Zealand
Before applying for a bank account, you must have a registered New Zealand company. This provides you with a Certificate of Incorporation and an Australian Company Number (ACN), which are required by the bank.
Step 2: Obtain an IRD Number
Apply for an IRD number with the Inland Revenue Department. This tax identification number is a mandatory part of the bank’s due diligence process.
Step 3: Gather Required Documentation
Prepare all necessary documents. This includes certified copies of passports for all directors and major shareholders, proof of residential address for each, and a detailed business plan outlining your company’s intended activities in New Zealand.
This is a relatively straightforward part of opening a corporate bank account in New Zealand. You simply need proof of ID, proof of a (usually) kiwi address and any other documentation the bank requires. The latter depends on your circumstances and/or the specific bank you are using.
The bank will go through your documentation to make sure everything is in order. This may take some time, so be prepared to wait and stay attentive in case they have any queries. There may also be questions or problems stemming from the upload process if you are opening the account online.
Step 4: Complete the Bank’s Application Process
Submit the formal application to your chosen bank. This will be followed by an in-person meeting at a local branch for identity verification.
This varies depending on both the bank itself and the type of account. However, the general rule is that there is no minimum deposit required.
Can a Foreigner Open a Bank Account in New Zealand?
Depending on your chosen bank, you can apply and open your New Zealand bank account anywhere from 90 to 365 days before you arrive in the country. It’s essential to ensure you possess a valid visa before starting the application process.
Due Diligence and Compliance Requirements
New Zealand banks are subject to strict domestic and international regulations. Understanding these requirements is essential for a smooth application process, as banks will not proceed without complete and verified documentation.
What Documents Do You Need to Open a Corporate Bank Account in New Zealand?
The specific requirements for opening a bank account in New Zealand may vary slightly depending on your chosen account type and the financial institution you select. Your circumstances, such as US citizenship or residency, may necessitate additional documentation.
Nevertheless, since all New Zealand banks must adhere to local and global financial regulations, the requisite documents generally remain consistent. To open a bank account, you typically need:
- Valid proof of identity, usually a government-issued photo ID.
- Valid proof of address, with traditional banks often requiring a local New Zealand address.
- Proof of meeting any other eligibility criteria.
Accepted identification documents typically include:
- A valid New Zealand or foreign passport with a visa if you’re not a New Zealand citizen.
- New Zealand refugee or emergency travel documents.
- A full New Zealand driving license.
- New Zealand firearms license.
Accepted proof of address documents often include:
- Recent bank statements showing a New Zealand address (digital statements are typically not accepted).
- Recent New Zealand credit card statements or utility bills.
- Government correspondence containing your name and address.
If you lack the suggested documents, such as a mortgage statement or tenancy agreement contact the bank directly.
Which Bank is Good for a Business Account in New Zealand?
Whether you’re looking to open an investment account, accommodate flexible payment options, or facilitate global money transfers, certain banks in New Zealand offer increased versatility to meet the unique needs of your business. It’s important to choose a bank that aligns seamlessly with your company’s needs.
Here are five esteemed banks in New Zealand:
- Bank of New Zealand: The Bank of New Zealand (BNZ), established in 1861 and is one of the country’s oldest banks, offers specialized services primarily tailored to expatriates in New Zealand. For expatriates seeking investment opportunities, BNZ presents a diverse array of options, such as managed funds accounts and term deposits, making it a top choice among banks for expatriates in New Zealand.
- Kiwibank: With a network encompassing 266 branches and over 250 ATMs nationwide, supported by approximately 2,500 employees, Kiwibank is a notable presence in the country. Kiwibank offers a comprehensive range of retail banking products and services catering to individuals and small to medium-sized enterprises (SMEs). Furthermore, the bank extends its offerings to encompass retail banking products, and agency services for mortgage lending, including investment and fund management solutions.
- ANZ: ANZ is one of the largest banking service providers in New Zealand. ANZ extends a range of valuable services tailored for expatriates, including business banking and insurance. It facilitates a dedicated pathway for new residents planning to relocate to New Zealand. Within 90 days of arrival, individuals can conveniently apply online, selecting from five distinct account types.
- Westpac: Westpac has a rich history of providing services across various sectors, including consumer banking, wealth management, commercial, corporate, institutional banking, investments, and insurance. Established in 1861, the bank boasts a network comprising 163 branches and over 450 ATMs nationwide. Drawing upon its extensive experience working with expatriates, Westpac New Zealand offers a dedicated account known as the Migrant Banking Package. Tailored to meet the diverse needs of expatriates in New Zealand, this account addresses a wide range of banking requirements.
- ASB: ASB allows you to establish a foreign currency account, facilitating seamless financial management between New Zealand and other countries, without incurring any monthly account fees. However, a minimum balance requirement applies when opening a foreign currency account. For example, if you opt for a US dollar (USD) foreign currency account, you’ll need to deposit a minimum balance of USD$5,000.
FAQs on a corporate bank account in New Zealand
Based on our extensive experience, these are the common questions and doubts of our clients about opening a company bank account in New Zealand:
1. Can I open a corporate bank account online in New Zealand?
This is by far the most common way to open a corporate bank account in New Zealand, although it can still be done in person as well.
2. What documents do I need to open a company bank account in New Zealand?
To open a corporate bank account in New Zealand, you will be required to complete a detailed application and provide the following information:
Valid proof of identity, usually a government-issued photo ID.
Valid proof of address, with traditional banks often requiring a local New Zealand address.
Proof of meeting any other eligibility criteria.
3. Who can have access to a company bank account in New Zealand?
Bank account access can usually be granted by the account owner through the virtual platform of the bank with a physical security token device.
4. What is the best bank in New Zealand for foreign companies?
Whether you’re looking to open an investment account, accommodate flexible payment options, or facilitate global money transfers, certain banks in New Zealand offer increased versatility to meet the unique needs of your business. It’s important to choose a bank that aligns seamlessly with your company’s needs.
Bank of New Zealand fits the needs of most businesses.
5. Why do companies open bank accounts in New Zealand?
A bank account is a must for all companies in New Zealand. The bank account will allow you to complete operations, including paying taxes, payroll, local suppliers, and all domestic transactions.
6. Does New Zealand have banking secrecy?
Banks have a legal responsibility under the Privacy Act to preserve confidentiality.
7. Can I open a New Zealand bank account from overseas?
You can start the application process from overseas, but you cannot complete it entirely remotely. Banks require in-person verification of identity for the company directors and account signatories at a New Zealand branch.
8. What is an IRD number and why do I need it?
An IRD number is an eight or nine-digit number issued by New Zealand’s Inland Revenue Department (IRD). It is your company’s unique tax identification number. Banks require this number as part of their customer due diligence and for tax reporting purposes.
9. How long does it take to open a corporate bank account?
The timeline can vary significantly depending on the bank and the complexity of your company structure. After submitting all required documents and completing the in-person verification, the process typically takes between two to four weeks.
10. What documents are needed to prove my address?
To prove your residential address, you will need to provide a recent document (typically less than three months old) that shows your name and address. Accepted documents include a bank statement, a utility bill (electricity, water, gas), or a letter from a government agency.
Biz Latin Hub can help you open a corporate bank account in New Zealand
Biz Latin Hub offers integrated market entry and back-office services worldwide, including New Zealand.
Our unrivaled reach means we can support multi-jurisdiction market entries and cross-border operations.
As well as knowledge about how to open a corporate bank account in New Zealand, our portfolio of services includes hiring & PEO accounting & taxation, company formation, bank account opening, and corporate legal services.
Contact us today to learn more about how we can assist you in finding top talent, or otherwise do business in Latin America, the Caribbean, and Oceania.
